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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Finds Tariff Relief Ahead of Crypto Summit
Crypto market sentiment improved on March 4, as investors considered US tariff developments. On March 4, President Trump’s Commerce Secretary Howard Lutnick reportedly said that Trump could roll back tariffs on Canada and Mexico, with an announcement likely on Wednesday, March 5.
Speculation about tariff relief supported a BTC rebound from a Tuesday session low of $81,485. However, a lack of clarity on US-China tariffs capped BTC’s gains.
US tariffs on Canada, China, and Mexico took effect on March 4, weighing on US markets. The Dow and S&P 500 closed the Tuesday session down 1.55% and 1.22%, respectively, while the Nasdaq Composite Index fell 0.35%.
US BTC-Spot ETF Market Faces Renewed Outflows
The US BTC-spot ETF market faced renewed outflow pressures on March 4 as investors considered the impact of tariffs on the Fed rate path. Higher tariffs drive inflation, potentially delaying Fed rate cuts. Rising borrowing costs could affect demand for risk assets, including BTC.
According to Farside Investors, key flow data for March 4 included:
- ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $43.9 million.
- Bitwise Bitcoin ETF (BITB) reported net outflows of $24.0 million.
- Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $46.1 million.
- Meanwhile, Grayscale Bitcoin Mini Trust (BTC) had net inflows of $35.8 million.
Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market recorded $127 million in net outflows after $2.61 billion in outflows in the week ending February 28.
Flow trends reflected investor concerns about US tariffs and the US economic outlook, aligning with US equity market trends.
Bitcoin Price Scenarios: Key Levels to Watch
On March 4, BTC gained 1.28%, partially reversing Monday’s 8.61% tumble, closing at $87,301. BTC and the broader crypto market could face another choppy session on Wednesday, March 5.
The US ISM Services PMI, ADP employment change data, and tariff developments could influence risk sentiment.
Potential price scenarios:
Bearish Scenario: Escalating trade disputes, weaker US data, BTC-spot ETF outflows, and resistance to a Crypto Strategic Reserve Asset could drag BTC below $80,000.
Bullish Scenario: Easing trade tensions, upbeat US data, ETF inflows, and lawmaker support for a US Crypto Strategic Reserve could drive BTC toward its record high of $109,312.
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